Core inflation in the eurozone will likely come down more gradually than in the U.S., causing the European Central Bank to wait longer than the Federal Reserve to start cutting interest rates, Capital Economics deputy chief eurozone economist Jack Allen-Reynolds writes in a note. Core inflation in the U.S. began to accelerate in late 2020—much earlier than in the euro area—and its decline in the last year could herald a similar turning point for the eurozone, he writes. But while goods inflation has started to fall in recent months in the eurozone, services have been more sticky, with growth in wages accelerating in the…


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